Respond to Price Tiers

Price tiers are reductions in the price of an item in return for purchasing it in bulk.

For example, a supplier might ask a certain price for a purchase of up to nine cases of widgets but offer a lower price for a purchase of ten or more cases. Price tiers are used by the buyer and seller to minimize the amount paid per unit and to maximize the number of units sold.

In this scenario, the Category Manager for Vision corporation has defined a negotiation to renegotiate an existing agreement with Office Supplies, Inc., one of the company's major suppliers, and has specified price tiers on many of the lines. John Angelo, the customer representative for Office Supplies Inc account, and so responds to the negotiation.

Respond to Price Tiers

1. After completing the Overview and Requirements page, John accesses the negotiation line by clicking the Lines train stop.

2. He enters all the appropriate negotiation line information and then notices the icon in the Required Details for one of the negotiation lines. He clicks the icon to access the Lines: Edit Line page.

3. He views the existing price tier values that were entered by the negotiation creator. He can enter a different price level structure if he wants. For example, the original price tiers suggested by the Category Manager might be:

   Minimum Amount	Maximum Amount	Price
   1	500	16
   501	1000	14

4. However, Tom wants to propose a different structure and so enters the following table:

   Minimum Amount	Maximum Amount	Price
   1	300	16
   301	600	14
   601	1000	12

5. He also enters a response price. Note that, depending on the quantity he is offering to sell, the price must match the price reflected in the price tiers he is suggesting.

6. Once Tom has finished entering his line information, he clicks Save and proceeds creating his response.